Kizspy | Question: 8 (Choose 1 answer)
(27602) Corn call options with a $1.75 strike price are trading for a $0.14 premium. Farmer Jayne decides to hedge her 20,000 bushels of corn by selling short call options. Six-month interest rates are 4.0% and she plans to close her position in 6 months. What is the total premium she will earn on her short position?
A. $2,800
B. $2,912
C. $800
D. $1,600
